Navigating the Transition to Industry 5.0: Risk and Resilience in Technology Startups

Abstract

Background and Objectives: The rapid advancement of digital technologies has driven Industry 4.0, yet emerging research emphasizes a shift toward Industry 5.0, which prioritizes human-centric, sustainable, and resilient innovation. Despite the growing importance of this transition, there is limited understanding of how early-stage technology startups manage risks while aligning with these Industry 5.0 principles, particularly in emerging economies. This study aims to examine how Thai technology startups perceive and navigate risks associated with product development, market adoption, and ecosystem dependencies in the context of Industry 5.0.

Methodology: A qualitative multiple-case study design was employed to explore these issues in depth. Seven early-stage technology startups across diverse sectors, including education, healthcare, construction, and alternative medicine, were purposively selected to ensure variation in digital platforms and technology-based products. Semi-structured interviews were conducted with founders or co-founders, focusing on entrepreneurial motivations, business development processes, perceived risks, adaptation strategies, and ecosystem support. The interview data were analyzed using thematic coding, which involved initial coding to identify recurring challenges and risk factors, axial coding to group codes into broader themes, and interpretive analysis to align findings with the emerging Industry 5.0 framework. Themes were validated through cross-checking by multiple researchers and iterative comparison across cases.

Main Results: The findings reveal that startups integrate human-centric design, sustainability-oriented innovation, and resilience-building strategies to navigate uncertainty, while simultaneously confronting technology and ecosystem-related risks. Human-centric approaches allow startups to align their offerings with real user needs, often informed by the founders’ personal experiences and iterative feedback from target users. Sustainability considerations, including social and economic dimensions, contribute to long-term viability by supporting small businesses, promoting equitable access, and addressing societal challenges. Resilience mechanisms, such as pivoting, minimum viable product testing, and learning from failure, enhance startups’ adaptive capacity and ability to respond to environmental shocks. Technology-related risks, particularly the recruitment and management of skilled technical talent, along with limitations in funding and mentorship, were identified as critical ecosystem vulnerabilities. Access to incubator support, structured mentorship, and institutional resources played a central role in mitigating these risks and enabling startup survival.

Conclusions: These findings contribute to entrepreneurship and innovation literature by demonstrating that Industry 5.0 provides a comprehensive framework for understanding startup risk management that extends beyond purely technical and financial dimensions. The study highlights the importance of integrating human-centricity, sustainability, and resilience in entrepreneurial practice, while also emphasizing the role of ecosystem support in emerging economies.

Practical Application: The insights offer practical implications for entrepreneurs, incubators, and policymakers seeking to foster sustainable and resilient startup ecosystems, suggesting that targeted support mechanisms, combined with iterative and adaptive innovation strategies, can enhance both startup performance and societal impact.